How do bank earn?

Question

How do bank earn?

Answer 1

by investing clients money and from the interest from loans.

Answer 2

Banks earn their money from holding onto peoples money and using that interest as profit. For most banks they will hold onto money for a few days to ensure a collection of interest. They will also gain credit from charging for loan security, overdrafts etc

Answer 3

technically the bank doesn't have to "earn" to stay alive...so long as there are enough customers there is a large enough revolving debt in people's accounts to technically cover them...except in the event they go under. but think of all the personal/auto/school/mortgage/credit card loans people take...that is a lot of interest. there are the odp fees and non-customer fees..but the big money is in the loans, and lets face it look at interest rates one can always ensure more interest per dollar the more dollars you have...the bank has the biggest amount therefore they can get the most profitable returns in investments due to the expertise of their employees!

Answer 4

Everybody answer mine I really need help

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